Some months ago Rawson Properties’ Strand franchise mailed a wide cross-section of the homeowners in their area, giving them a simple message: “The market has turned at last, there is light on the horizon now. Is it not time for you to consider a re-evaluation of your home? If you would like such a valuation, we will do it for you free of charge.”
“The message in our mailing,” says Wouter Joubert, co-franchisee and manager of Rawson Properties Strand, “was wholly valid. There had been big price drops, but these are now very definitely over. This year we are witnessing a 5% to 6% overall price increase in middle bracket homes.”
The response to the mailing, says Joubert, was excellent and in 2012, Rawson Properties Strand have been selling 10 to 14 houses per month. This is double the rate of last year.
Joubert adds, however, this good news applies mainly to middle bracket freestanding homes, i.e. those selling from R850, 000 to R1, 4 million. Any home in a reasonably good area in this price category, if it is fairly priced, he says, will be sold by his team within a fortnight.
In the higher priced bracket, i.e. R1, 5 million to R5 million, he says, it can still take far longer to achieve a sale and owners have now to accept anything from a 15% to a 25% drop on the prices that were paid in the 2007/early 2008 boom.
Particularly hard hit in the upper price brackets, says Joubert, are the much coveted luxury sectional title units along the internationally acclaimed Beach Road. This precinct has some of the finest coastal properties in South Africa.
Five to six years ago, says Joubert, in a flush of optimism and confidence, many new developments along this road were built and people were happy to pay up to R4 million for a luxury high rise unit. This, he says, often equated to R20, 000 per m2.
Today many of those same units are selling for R12, 000 to R14, 000 per m2. What this means, says Joubert, is that anyone taking the plunge today will, in his opinion, five years from now find themselves owning an asset that will represent excellent value for money and be the envy of sectional title owners throughout South Africa.
Also not faring as well as the middle bracket homes mentioned above, says Joubert, have been the more affordable, investment units set back from the beachfront, many of which are situated in the not-so-popular areas. Here prices can be as low as R280 000. This market, too, says Joubert, went through a boom five years ago, but today sellers struggle to get even close to the prices they paid back then.
“The message we need now to get out to the public,” says Joubert, “is that in all categories,prices are still exceptionally reasonable, especially when compared to those of other Helderberg Basin nodes, such as Somerset West. This is, therefore, the ideal place for the slightly less affluent, the first time buyer and the retiree buyer to be looking – and, with some 300 sectional title and 150 freestanding units on our stock books we, like other agents in the area, can offer a very wide range of choice.”
Buyers, he adds, are finding it far easier now to get bonds and this, too, should be spurring them on to make a decision now while interest rates are at their all-time record low level.
“The message in our mailing,” says Wouter Joubert, co-franchisee and manager of Rawson Properties Strand, “was wholly valid. There had been big price drops, but these are now very definitely over. This year we are witnessing a 5% to 6% overall price increase in middle bracket homes.”
The response to the mailing, says Joubert, was excellent and in 2012, Rawson Properties Strand have been selling 10 to 14 houses per month. This is double the rate of last year.
Joubert adds, however, this good news applies mainly to middle bracket freestanding homes, i.e. those selling from R850, 000 to R1, 4 million. Any home in a reasonably good area in this price category, if it is fairly priced, he says, will be sold by his team within a fortnight.
In the higher priced bracket, i.e. R1, 5 million to R5 million, he says, it can still take far longer to achieve a sale and owners have now to accept anything from a 15% to a 25% drop on the prices that were paid in the 2007/early 2008 boom.
Particularly hard hit in the upper price brackets, says Joubert, are the much coveted luxury sectional title units along the internationally acclaimed Beach Road. This precinct has some of the finest coastal properties in South Africa.
Five to six years ago, says Joubert, in a flush of optimism and confidence, many new developments along this road were built and people were happy to pay up to R4 million for a luxury high rise unit. This, he says, often equated to R20, 000 per m2.
Today many of those same units are selling for R12, 000 to R14, 000 per m2. What this means, says Joubert, is that anyone taking the plunge today will, in his opinion, five years from now find themselves owning an asset that will represent excellent value for money and be the envy of sectional title owners throughout South Africa.
Also not faring as well as the middle bracket homes mentioned above, says Joubert, have been the more affordable, investment units set back from the beachfront, many of which are situated in the not-so-popular areas. Here prices can be as low as R280 000. This market, too, says Joubert, went through a boom five years ago, but today sellers struggle to get even close to the prices they paid back then.
“The message we need now to get out to the public,” says Joubert, “is that in all categories,prices are still exceptionally reasonable, especially when compared to those of other Helderberg Basin nodes, such as Somerset West. This is, therefore, the ideal place for the slightly less affluent, the first time buyer and the retiree buyer to be looking – and, with some 300 sectional title and 150 freestanding units on our stock books we, like other agents in the area, can offer a very wide range of choice.”
Buyers, he adds, are finding it far easier now to get bonds and this, too, should be spurring them on to make a decision now while interest rates are at their all-time record low level.
